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Tories say they will keep low base rate after general election
inspector_monkfish
Posts: 9,276 Forumite
12:15 15Sep09 UK Opposition Would Seek Loose Monetary Policy From BOE
LONDON--The U.K. opposition Conservative party would want the Bank of England to keep monetary policy loose for as long as possible if it wins a coming general election, economic spokesman George Osborne said Tuesday.
In a speech Tuesday, Osborne said Conservative economic policy would be based on "monetary activism, fiscal responsibility and supply-side reform."
"One of the first conversations any Chancellor would want to have is with the Governor of the Bank of England," Osborne said, according to a text of his remarks.
He went on to say his party's commitment to spending cuts and tight fiscal policy "will allow the independent MPC (Monetary Policy Committee) to keep interest rates as low as possible for as long as possible while keeping inflation and inflation expectations securely anchored."
Prime Minister Gordon Brown must hold a general election by mid-2010. His Labour party currently trails the Conservatives by a double-digit margin in opinion polls.
Osborne criticized the government's economic policy response to the
recession, saying its fiscal stimulus package had been largely a waste of money and that the market's concerns about the U.K.'s fiscal stance will raise long-term interest rates, preventing a sustainable recovery.
Osborne, speaking ahead of a speech by Brown to union leaders Tuesday afternoon in which he is expected to acknowledge for the first time the need for spending cuts, said the Conservatives were right to warn of what he called a looming debt crisis and the need for spending cuts.
"We could have taken the easy route, ducked telling the public the truth and avoided a pitched battle with our opponents on the same terrain on which our party has lost so often."
He said a Conservative government would aim to construct a new model for U.K. economic growth that would require "an economy with a structurally higher rate of national savings, a more competitive export sector and higher rates of private investment in long-term productive assets."
He also said that while making London the world's number one financial center will be "a key objective of policy," a Conservative government would work for increased competition in the banking sector and wouldn't accept large bonuses from banks receiving any kind of government support.
Last month, Financial Services Authority Chairman Adair Turner said the U.K. financial service industry may have grown too big, generating excessive profits and salaries.
LONDON--The U.K. opposition Conservative party would want the Bank of England to keep monetary policy loose for as long as possible if it wins a coming general election, economic spokesman George Osborne said Tuesday.
In a speech Tuesday, Osborne said Conservative economic policy would be based on "monetary activism, fiscal responsibility and supply-side reform."
"One of the first conversations any Chancellor would want to have is with the Governor of the Bank of England," Osborne said, according to a text of his remarks.
He went on to say his party's commitment to spending cuts and tight fiscal policy "will allow the independent MPC (Monetary Policy Committee) to keep interest rates as low as possible for as long as possible while keeping inflation and inflation expectations securely anchored."
Prime Minister Gordon Brown must hold a general election by mid-2010. His Labour party currently trails the Conservatives by a double-digit margin in opinion polls.
Osborne criticized the government's economic policy response to the
recession, saying its fiscal stimulus package had been largely a waste of money and that the market's concerns about the U.K.'s fiscal stance will raise long-term interest rates, preventing a sustainable recovery.
Osborne, speaking ahead of a speech by Brown to union leaders Tuesday afternoon in which he is expected to acknowledge for the first time the need for spending cuts, said the Conservatives were right to warn of what he called a looming debt crisis and the need for spending cuts.
"We could have taken the easy route, ducked telling the public the truth and avoided a pitched battle with our opponents on the same terrain on which our party has lost so often."
He said a Conservative government would aim to construct a new model for U.K. economic growth that would require "an economy with a structurally higher rate of national savings, a more competitive export sector and higher rates of private investment in long-term productive assets."
He also said that while making London the world's number one financial center will be "a key objective of policy," a Conservative government would work for increased competition in the banking sector and wouldn't accept large bonuses from banks receiving any kind of government support.
Last month, Financial Services Authority Chairman Adair Turner said the U.K. financial service industry may have grown too big, generating excessive profits and salaries.
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
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Comments
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"will allow the independent MPC (Monetary Policy Committee) to keep interest rates as low as possible for as long as possible while keeping inflation and inflation expectations securely anchored."
ok so its not exactly as you put in your heading then is it? - there are certain conditions that will need to be in place!0 -
Low interest rates are bad anyway and are responsible for two bubbles in the last decade. Not to mention it discourages savings which makes the economy more fragile.
I personally want far higher rates and the BOE is meant to be independant of politics:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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"will allow the independent MPC (Monetary Policy Committee) to keep interest rates as low as possible for as long as possible while keeping inflation and inflation expectations securely anchored."
ok so its not exactly as you put in your heading then is it? - there are certain conditions that will need to be in place!
err, well of course, but they are saying they are going to continue to allow the MPC to make their own decisions.... and so rates will remain low.
many people have assumed that once tories get in, rates are going to spike highPlease take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
Low interest rates are bad anyway and are responsible for two bubbles in the last decade. Not to mention it discourages savings which makes the economy more fragile.
I personally want far higher rates and the BOE is meant to be independant of politics
GGGGGgggggrrrrr.....Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
inspector_monkfish wrote: »GGGGGgggggrrrrr.....
...just ignoreHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
inspector_monkfish wrote: »err, well of course, but they are saying they are going to continue to allow the MPC to make their own decisions.... and so rates will remain low.
many people have assumed that once tories get in, rates are going to spike high
You will prbably know better than me. But after the election whoever is in power surely they will have to make tough unpopular choices that could impact on interest rates. I'm sure Norman Lamont didnt put in the Tory manifesto that he would be pulling Britain out of the ERM and putting interest rates up to 14-15% . . . but it happened.0 -
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
You will prbably know better than me. But after the election whoever is in power surely they will have to make tough unpopular choices that could impact on interest rates. I'm sure Norman Lamont didnt put in the Tory manifesto that he would be pulling Britain out of the ERM and putting interest rates up to 14-15% . . . but it happened.
:rotfl:i'm sure he didn't !
totally different circumstances these days though...Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
Anyone gonna start a whipround for Brit ?Space available for rent0
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Peelerfart wrote: »Anyone gonna start a whipround for Brit ?
how about another £200bn of Quantitative Easing then?0
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